The forestry sector requires stable and consistent employee performance to sustain ecological, economic, and social functions, particularly within organizations responsible for managing strategic state forest resources. Performance fluctuations at Perum Perhutani Regional Division of East Java indicate the importance of examining internal organizational factors that may influence employee effectiveness. This study aims to analyze the effects of work discipline, job promotion, work environment, and compensation on employee performance. A quantitative research approach was employed, using primary data collected through questionnaires from 50 permanent employees selected through purposive sampling from a population of 115 employees. The collected data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS to evaluate the measurement and structural models. The results demonstrate that work discipline, job promotion, work environment, and compensation each have a positive and significant effect on employee performance. Work discipline emerged as the most dominant determinant, with a coefficient of 0.629 and an effect size of 1.079, followed by the work environment with a coefficient of 0.306 and an effect size of 0.320. Job promotion and compensation also demonstrated significant positive effects, although their contributions were comparatively smaller. The coefficient of determination (R²) of 0.709 indicates that the proposed model explains 70.9% of the variance in employee performance, while 29.1% is attributable to factors outside the model. These findings highlight the strategic importance of strengthening internal human resource management practices, particularly work discipline and workplace conditions, to improve performance stability, organizational effectiveness, and sustainable state forest management outcomes.
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